"SEC’s Reg A+ Rules Unlikely To Be Derailed By State Suits," Law360

June 23, 2015

On June 19, 2015, Law360 spoke with Jonathan B. Wilson on the new capital-raising rules that took effect on June 19, 2015, aimed at easing barriers for small companies to raise funds, prompting suits from Montana and Massachusetts. Reg A+ guidelines, authorized by the JOBS Act of 2012, will provide new registration exemptions for businesses to raise up to $50 million in new capital over a 12-month period. This raises the ceiling on the exemptions from a previous $5 million, in hopes of encouraging wider capital formation among young companies. Mr. Wilson suggests that the uncertainty from the suit might dissuade issuers from raising capital under the new framework until the litigation is resolved. These lawsuits, he adds, are more driven by politics than anything else. Read more of Mr. Wilson’s comments on the suit and the full article.